From Coinpedia · By Yash Jain
Story HighlightsANDE signed a 15-year electricity agreement with Kuntur for an AI project requiring up to 286 MW.
HIVE's 300 MW Paraguayan infrastructure faces electricity contract expirations on December 31, 2027.
AI data centers are securing longer-term electricity commitments, increasing competition for Paraguay's hydropower.
Paraguay’s electricity market is becoming increasingly competitive, and Bitcoin News is starting to highlight a growing problem for miners. The country’s mining industry is expected to generate approx. $350 million in electricity revenue for state utility ANDE this year, making the battle for hydropower particularly significant.
Advertisement While AI infrastructure developers are securing long-term power agreements, existing cryptocurrency mining operations face a significant contractual deadline in 2027.
The contrast became clearer in October 2026, when Paraguay’s state-owned electricity utility ANDE signed a 15-year electricity supply agreement with Kuntur S.A. for an AI infrastructure project requiring up to 286 megawatts (MW). For Bitcoin miners operating in the country, the timing raises an uncomfortable question: what happens when their existing electricity agreements expire?
AI Data Centers Secure Longer-Term Electricity Deals
The Kuntur agreement provides electricity supply over 15 years, with deliveries scheduled to begin at 6 MW on December 1, 2026. Capacity will gradually increase, reaching the full 286 MW by April 2029.
That’s a substantial commitment. More importantly, it highlights how AI data centers are becoming serious competitors for Paraguay’s hydroelectric power.
The arrangement stands in contrast to HIVE Digital Technologies’ existing electricity agreements, which have a much closer expiration date.
HIVE’s 300 MW Infrastructure Faces 2027 Deadline
HIVE operates approximately 300 MW of infrastructure across two Paraguayan facilities: 200 MW at Yguazú and 100 MW at Valenzuela.
According to its 2026 annual report, the electricity purchase agreements covering both facilities expire on December 31, 2027.
That’s not a minor contractual detail. Continued operations beyond that date depend on renegotiating existing agreements or securing replacement electricity arrangements on commercially acceptable terms.
HIVE’s position illustrates the uncertainty facing large-scale Paraguay Bitcoin mining operations as competition for electricity intensifies.
Paraguay’s Mining Industry Faces Tougher Competition
The situation doesn’t automatically mean Bitcoin miners will lose access to electricity. However, the difference in contract duration raises questions about future power availability and operating costs.